Considerations when contemplating a partnership when buying a business, 16 minutes

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Buying a business requires the investment of a lot of time upfront before you invest one measly dime! In fact, 50-70% of the ‘work’ in buying a business is completed before you get to the fifth and last phase of actually buying the business.

That is where the “Tips and Traps When Buying a Business” book shines.

Not only will it help you understand the process of buying a business, it will also help you make good use of your time by being able to eliminate poor candidates and focus on the best business opportunities.

First timers and experienced entrepreneurs will find this book invaluable. This book will impart the reader with all the information, knowledge, and structure needed to to locate and investigate potential businesses, identify the right kind of business for you, arrange financing, hire professionals, and save on fees.

If you already have your eye on a specific business this book will help you determine the value of the business, how to minimize your risk, and a step-by-step process to guide you through the many tasks of buying a business.

This section of the web site is provided to introduce you to my new book(now shipping in 24 hours) Tips and Traps When Buying a Business.Part I: You Really Can Buy a Business

Chapter 1: Get Control of Your Future

• The Key to Buying a Business: Preparation and Organization
• Dangerous Liaisons – Believing Your Own Assumptions
• Beware of Your Emotions
• Planning Reduces Risk
• Personal Sacrifice, Priorities, and Results
• Six Phases of Business Planning
• Learn How to Write a Business Plan
• Selling Yourself – Hone Your Communication Skills
• Prepare Your Resume or CV
• Filing System
• The Electronic Method
• Building Relationships

Chapter 2: No Guts, No Glory: Things to Consider Before Buying a Business

• What Is Your dream?
• Face the Brutal Reality
• Maintain Perspective
• Prepare for Failure
• Evaluate the Business Potential
• Thoroughly Review the Business You Want to Buy
• Investigate the Industry
• Success Factors
• Basic Business Skills
• Personal Issues
• Types of Businesses
• Which Type of Business Is Best for You?
• Franchise
• Starting a Business from the Ground Up
• Buying an Existing Business
• The Benefits of Buying an Existing Business

Chapter 3: Uncovering the ‘Right Stuff’

• Finding the Right Stuff Questionnaire

Part II: Locating a Business to Buy

Chapter 4: Working with Professional Advisers

• The Team
• You Are Still the Decision Maker
• Advisers Provide Perspective
• Working with an Accountant or CPA
• The Deal before the Deal
• Business Brokers
• Informal Advisers

Chapter 5: Finding a Business That Fits You

• Businesses Are for Sale for a Reason
• Finding a Business That Fits You
• Selecting the Type of Business
• Learn More about the Industry
• Other Things to Consider

Chapter 6: Locating an Acquisition Target

• Create a Profile of Your Ideal Business Acquisition
• Tapping Personal Relationships to Locate a Business
• Locating Businesses That Are Not for Sale
• Market Analysis
• Competition Analysis
• Identify Trends in Sales and Profits by Market Segment
• Market Size and Market Share
• Local Market Information Online
• Importance of Estimating Market Share
• Market Area
• External factors

Part III: Determining the Value of a Business

Chapter 7: The Goodwill Controversy

• Goodwill Is Subjective and Controversial
• Impact of Goodwill on the Price of a Business
• Accountant’s View of Goodwill
• A Business Owner’s View of Goodwill
• Every Successful Business Has Goodwill
• Creating Your Own Goodwill Up Front
• Seller Financing

Chapter 8: The Art of Business Valuation

• Value of Hard and Soft Assets
• Value of Market Position
• Evaluating How Much to Pay for a Business
• Common Valuation Methods
• Use Multiple Valuation Models
• Other Considerations That Impact Value
• Understanding Appraisals
• Limitations of the Analysis Process

Chapter 9: Uncovering Hidden Assets – The Human Factor

• Employee Information
• Be Cautious in Your Communications with Employees
• Get the Information You Need by Listening
• Pay Attention to Attitude

Chapter 10: Selling the Seller – Gaining Cooperation

• Beware Your Comfort Zone
• Discard Fear, Be Confident
• Free Money
• Build Rapport
• Negotiate, Do Not Demand
• A Healthy Ego
• The Person Listening Controls the Conversation
• Read Body Language
• Understanding the Seller

Part IV: How to Minimize Your Risk

Chapter 11: Show Me the Money: Understanding Financial Statements

• Following the Money Trail
• Introduction to Financial Statements
• The Five Types of Financial Statements
• Retained Earnings, Stockholders’ Equity
• Goodwill
• Cash-Flow Analysis
• Fair Market Value
• Liability Accounts
• Asset Accounts
• Net Profit
• Gross Profit
• Net Worth
• Appraisal
• Financial Analysis
• Business Plan
• Generally Accepted Accounting Principles (GAAP)
• Professional Advice

Chapter 12: Prepare or Repair – Create an Acquisition Plan

• The Acquisition Target
• Your Business Goals
• Operational Information
• Legal Structure
• Products or Services
• Industry Analysis
• Marketing Strategy
• Operations
• Implementation Plan
• Financial Plan

Chapter 13: Business Finance

• Financial Information You Need to Organize
• Your Accountant’s Functions
• Financial Projections
• Your Financial Plan
• The Purpose of Financial Projections
• Gather Historical Information
• The Art of Financing Your Business
• Loan Officers, Loan Committees, and You
• The Loan Officer’s Role
• Qualifying for a Line of Credit
• Using a Line of Credit
• Where Should You Go for a Loan?
• Emotional Traps

Chapter 14: Does Your Business Plan Pass the Acid Test?

• Market Size and Market Share
• Finding Market Size the Easy Way
• Estimating Market Size – Doing It Yourself
• Sensitivity Analysis

Chapter 15: Approaching Business Owners – Who Are You? Why Should I Care?

• Make Sure You Are Organized
• Before You Approach the Owner
• The First Meeting
• Practice Professional Detachment
• Matchmaking Made Easy
• Getting the Seller’s Attention

Part V: Buying a Business Step-by-Step

Chapter 16: Understanding the Seller’s Situation

• The Seller asYour Single Biggest Obstacle
• Move Negotiations Along by Helping the Seller
• Move from Necessity Thinking to Possibilities Thinking
• Understand the Psychology Driving a Business Owner
• Shift Your Style to Mirror the Seller’s VAKOG Preferences
• Keeping Notes

Chapter 17: Preliminary Negotiations Begin

• Let the Seller Talk
• Information Gathering Questions
• Potential Pitfalls
• Balancing Risk and Rewards

Chapter 18: Overcoming Roadblocks and Obstacles and Identifying Deal Breakers

• Review and Organize Your Notes
• Roadblocks, Obstacles, and Deal Breakers Defined
• Overcoming Obstacles and Roadblocks

Chapter 19: Finding Solutions and Preparing a Letter of Intent

• The Letter of Intent
• Do Not Use Templates
• Binding Provisions
• Nonbinding Provisions
• Other Considerations
• Preparation Checklist
• Advanced Communication Tips

Chapter 20: Due Diligence – Verifying Information

• Take the Time to Verify Everything
• Prepare a List of Required Materials
• The Clock Starts When?
• Due Diligence List of Lists
• Create Your Acquisition Plan

Chapter 21: Executing a Deal

• Buying with Confidence – Review Your Work
• How People Make Decisions
• When in Doubt Refer Back to the Letter of Intent
• The Final Sales Agreement

Chapter 22: The Transition: Making the Business Yours and Boosting Morale

• The First 90 Days
• What Is a Communication Plan?
• A Morale Boost
• Seller’s Remorse
• From Corporate Culture to a Sense of Community

This section of the web site is provided to introduce you to my new book (now shipping in 24 hours) Tips and Traps When Buying a Business.

Chapter 23: Case Studies

• Auto Repair Shop
• Successful Business Owner Diversifies

Appendixes

• Appendix A: Business Dictionary
• Appendix B: Business Plan Writing Guide
• Appendix C: Due Diligence Checklist
• Appendix D: List of Legal Agreements
• Appendix E: Net Worth Statement Worksheet
• Appendix F: Transition Checklist
• Appendix G: Web Links
• Appendix H: Resume Guide

Sincerely,

Greg Balanko-Dickson, LPBC

Questions, inquiries, and suggestions are always welcomed, please call me at 1-866-281-8281 or email me at gregbd at gmail dot com